MCX Aluminium under fresh selling; Support seen at 144.8
MCX Nickel under short covering; Resistance seen at 850.5
MCX Zinc under fresh buying; Support seen at 212.7
MCX Natural Gas likely to move in a range of 179.3-187.9
MCX Crude Palm Oil under fresh buying; Support seen at 4383
Technically Copper market is under fresh selling as market has witnessed gain in open interest by 9.22% to settled at 17906 while prices down 2.5 rupees.
Now MCX Copper is getting support at 418 and below same could see a test of 416 level, And resistance is now likely to be seen at 423.3, a move above could see prices testing 426.6.
On Thursday, the U.S. government had added Huawei and 68 entities to an export blacklist that makes it nearly impossible for the Chinese company to purchase goods made in the United States, escalating Sino-U.S. trade tensions and weighing on prices for industrial metals.
The global world refined copper market showed a 74,000 tonnes surplus in February, compared with a 33,000 tonnes deficit in January, the International Copper Study Group (ICSG) said in its latest monthly bulletin.
In an interview, James Bullard, president of the St. Louis Federal Reserve, said that he was worried about low core inflation and added that he would get more aggressive in pushing the FOMC to lower the policy rate if low inflation persisted.
“On the inflation part of our mandate our preferred measure of inflation which is core PCE inflation is only running at 1.6% year-over-year,” Bullard explained. “This is a concern to me. I do think that this number plus relatively low inflation expectations warrant attention from the FOMC.”
“If low inflation turns out to be persistent, I’ll get more aggressive in pushing the FOMC to lower rates in reaction and try to recenter inflation expectations at 2%,” said Bullard. The US private sector’s mounting debts pose a “moderate” risk to the world’s largest economy, Federal Reserve Chairman Jerome Powell said.
–Copper trading range for the day is 416-426.6.
–Copper prices dropped tracking weakness in LME prices dropped below $6,000/mt levels as US-Sino trade uncertainty weighed.
–The global world refined copper market showed a 74,000 tonnes surplus in February, compared with a 33,000 tonnes deficit in January.
–Fed’s James Bullard, said that he was worried about low core inflation and added that he would get more aggressive in pushing the FOMC to lower the policy rate if low inflation persisted.
Courtesy: Kedia Commodities